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on Entrepreneurship |
| By: | Aurora A.C. Teixeira (INESC Porto; CEMPRE, Faculdade de Economia, Universidade do Porto) |
| Abstract: | Research on entrepreneurship potential targeting university students is emerging. However, it is in general focused on one school-one course. Few studies analyze the differences in entrepreneurial propensity between students of different subjects. In this paper we analyze the magnitude of this propensity in engineering and economics/business courses. The reason for such focus is that traditionally these courses are viewed as the ones concentrating individuals that are more likely to create new ventures. The empirical results, based on a large-scale survey of 2430 final-year students, reveal that no statistical difference exists in entrepreneurial potential of economics/business and engineering students, and that these two latter groups have lower entrepreneurial potential than students from other courses. This result proves to be quite unfortunate given the focus that previous studies have placed on these two majors, and the fact that a substantial part of entrepreneurial education is undertaken in business and engineering schools. |
| Keywords: | Entrepreneurship; Students; Business; Engineering |
| JEL: | M13 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:256&r=ent |
| By: | Block, Jörn H.; Sandner, Philipp G. |
| Abstract: | Using data from the German Socio-Economic Panel Study (GSOEP), we analyze whether necessity entrepreneurs differ from opportunity entrepreneurs in terms of self-employment duration. Using univariate statistics, we find that opportunity entrepreneurs remain in self-employment longer than necessity entrepreneurs. However, after controlling for the entrepreneurs’ education in the professional area where they start their venture, this effect is no longer significant. We therefore conclude that the difference observed is not an original effect but rather is due to selection. We then go on to discuss the implications of our findings for entrepreneurship-policy making, and give suggestions to improve governmental start-up programs. |
| Keywords: | Self-employment; Firm survival; Necessity entrepreneurs; Opportunity entrepre-neurs; Hazard rates; GSOEP |
| JEL: | J23 J24 M13 C41 |
| Date: | 2007–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:msmdpa:2082&r=ent |
| By: | Borgman, Benny (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | The U.S. is traditionally viewed as an economy driven by entrepreneurs, whereas the Swedish model is associated with high welfare ambitions and less focus on entrepreneurial activities. This paper seeks to empirically investigate whether the connection between entrepreneurship and growth at the regional level differs between the U.S. and Sweden. By regressing annual entrepreneurship on regional employment growth (and controlling for other conceivable variables impacting employment growth) entrepreneurship is shown to be positively and significantly associated with regional growth in both countries in the 1990s. Still, the result is more robust for the U.S. Other important variables for regional growth is business density and, in the case of the U.S., educational levels and internal scale economies. |
| Keywords: | Entrepreneurship; Knowledge spillovers; Regional growth |
| JEL: | M13 O57 R11 |
| Date: | 2007–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0103&r=ent |
| By: | Ruta Aidis; Saul Estrin; Tomasz Mickiewicz |
| Abstract: | In this paper we use a comparative perspective to explore the ways in which institutions and networks have influenced entrepreneurial development in Russia. We utilize Global Entrepreneurship Monitor (GEM) data to study the effects of the weak institutional environment in Russia on entrepreneurship, comparing it first with all available GEM country samples and second, in more detail, with Brazil and Poland. Our results suggest that Russia’s institutional environment is important in explaining its relatively low levels of entrepreneurship development, where the latter is measured in terms of both number of startups and of existing business owners. In addition, Russia’s business environment and its consequences for the role of business networks contribute to the relative advantage of entrepreneurial insiders (those already in business) to entrepreneurial outsiders (newcomers) in terms of new business start-ups. |
| Date: | 2007–06 |
| URL: | http://d.repec.org/n?u=RePEc:edb:cedidp:07-03&r=ent |
| By: | Metzger, Georg |
| Abstract: | Entrepreneurs are often faced with problems regarding start-up financing. But compared to novice entrepreneurs, experienced entrepreneurs should have both more knowledge and better contacts, which should potentially reduce the occurrence of problems and affect finance composition. However, experience of business failure might result in additional effects. This analysis therefore investigates the effects of experience on several aspects of start-up financing. It is based on data from the KfW Start-up Monitor, a representative annual survey of the German population. The results show that experience affects several financing issues. Yet the impacts depend on the kind of experience. With regard to previously failed entrepreneurs, who are of particular interest, the findings indicate that they cut back their financing demand and are more likely faced with problems satisfying this demand. However, previously failed entrepreneurs do not significantly differ in the sources they use to finance their businesses. |
| Keywords: | Entrepreneurial experience, restart, start-up financing |
| JEL: | G32 L26 M13 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:6650&r=ent |
| By: | Metzger, Georg |
| Abstract: | The analysis in this paper gives attention to effects on firm survival which come from entrepreneurial experience. It is likely that different kinds of experience result in different firm developments and therefore in different types of firm exit. Particular emphasis is placed upon the effects of failure experience. The results provide evidence that both the kind of experience and the type of exit matter. Negative experience, namely the experience of failure, is found to heighten the risk of failing again. This finding indicates that business failures are largely not exceptions, but rather a sign of the entrepreneurs’ lack of ability. |
| Keywords: | Entrepreneurial Experience, Business Failure, Firm Survival |
| JEL: | G33 L25 L26 M13 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:6649&r=ent |
| By: | Carlsson, Bo (Case Western Reserve University); Acs, Zoltan (University of Baltimore); Audretsch, David (Max-Planck Institute); Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper explores the relationship between knowledge creation, entrepreneurship, and economic growth in the United States over the last 150 years. According to the “new growth theory,” investments in knowledge and human capital generate economic growth via spillovers of knowledge. But the theory does not explain how or why spillovers occur, or why large investments in R&D do not always result in economic growth. What is missing is “the knowledge filter” - the distinction between general knowledge and economically useful knowledge. Also missing is a mechanism (such as entrepreneurship) converting economically relevant knowledge into economic activity. This paper shows that the unprecedented increase in R&D spending in the United States during and after World War II was converted into economic activity via incumbent firms in the early postwar period and increasingly via new ventures in the last few decades. |
| Keywords: | knowledge; economic growth; entrepreneurship; spillovers; history |
| JEL: | N90 O14 O17 O30 |
| Date: | 2007–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0104&r=ent |
| By: | John Bennett; Saul Estrin |
| Abstract: | We model decisions with respect to formality or informality for entrepreneurs in a new industry for a developing economy. We show that informality allows a leader to explore, without significant sunk costs, the potential profitability of the industry; that is, informality may be a stepping stone, enabling an entrepreneur to experiment cheaply in an uncertain environment. There are circumstances under which, without this option, the industry would not become established. We analyse the roles of parameters such as a minimum wage rate and we show that the existence of finance constraints can actually encourage entry in this context. |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:edb:cedidp:07-11&r=ent |
| By: | Gerardo Jacobs |
| Abstract: | Most occupational choice models introduce only two options for agents: entrepreneurial activities or wage-employment. However, these models represent inadequately the labor force distribution from developing countries, where an important proportion of the total work force are self-employed workers. Some models introduce self-employment as an occupational choice. These works have a common feature : at equilibrium, wage earners belong to the lower end of the income distribution. However, for a large set of developing countries, peasants and small proprietors are part of a self employment sector that can mostly be found in the lower end of the income distribution. In this work, in contrast with previous efforts, self-employment formation is consistent with data from most developing countries. We pay special attention to the conditions under which either the economy ends in a low income equilibrium, where self-employment is the only form of production; or alternatively, a high income equilibrium with a well developed labor market. We study some public policy issues, paying special attention to role of capital markets and the efficiency of schooling. |
| Keywords: | Occupational Choice, Human Capital, Economic Development, General Equilibrium |
| JEL: | J24 O12 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec07:6538&r=ent |
| By: | Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | Knowledge plays a critical role in economic development, still our understanding of how knowledge is created, diffused and converted into growth, is fragmented and partial. The neoclassical growth models disregarded the entrepreneur and viewed knowledge as an exogenous factor. Contemporary current knowledge-based growth models have re-introduced the notion of the entrepreneur, however stripped of its most typical characteristics, and the diffusion of knowledge is kept exogenous. It implies that the predictions and policy conclusions derived from these models may be flawed. This paper reviews the literature that addresses the issues of knowledge creation, knowledge diffusion and growth, and the role attributed the entrepreneur in such dynamic processes. I will explore how these insights can be integrated into existing growth models and suggest a more thorough microeconomic foundations from which empirically testable hypotheses can be derived. |
| Keywords: | entrepreneurship; knowledge; growth; spillovers |
| JEL: | M13 O57 |
| Date: | 2007–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0102&r=ent |
| By: | Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | Is a shift in intellectual property rights to universities the key instrument in increasing com-mercialization of publicly funded research? How much can actually be learned from the U.S. system, disregarding the ongoing debate as to whether the U.S. do actually outperform Europe in terms of commercializing university based research? Taking Sweden as a role model I claim that this policy will not work. This allegation stems from the analysis of a unique data-base giving individual university researchers view on participation in commercialization of public research, their commercialization experiences, and the obstacles researchers claim exist to increase academic entrepreneurship. Despite researchers positive attitudes towards engag-ing in commercial activities, the university culture, weak incentive structures and badly man-aged support facilities impede the creation of efficient links to markets. I conclude that meas-ures must be taken at primarily the national level, but also at the university level, to enhance commercialization activities. |
| Keywords: | academic entrepreneurship; commercialization; links; policies |
| JEL: | J24 O31 O57 |
| Date: | 2007–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0100&r=ent |
| By: | Westlund, Hans (KTH and JIBS); Calidoni-Lundberg, Federica (Swedish Institute for Growth Policy Studies) |
| Abstract: | Do the social and cultural environments have any impact on regional development, expressed in terms of e.g. entrepreneurship, innovations and growth of new industries? A rapidly increasing field of research has found many indications on that such an impact of the civil society exists. In the literature, two partly contradicting hypotheses can be discerned: 1. Florida’s hypothesis, saying that a heterogeneous civil society with diverse values combined with tolerance is influencing regional growth in a positive way, and 2. Putnam’s hypothesis, saying that a homogenous civil society with common norms and values and trust between its citizens is having a positive impact on regional development.This paper studies the validity of these two hypotheses on the current regional development in Japan,measured in four alternative ways: population growth, the high-tech sector’s and high-tech services’ regional distribution, and the net growth of enterprises. As determining variables, we use data from the Japanese General Social Surveys’ International Comparative Survey on Values and Behavioral Patterns, Non-Profit Organizations per capita and share of the population being born abroad, plus control variables in the form of market accessibility and human capital. On detailed regional level (46 prefectures) the analysis does not give any significant support to any of the civil society hypotheses. However, on large-region level (8 regions) the civil society measure gives a significant result for high-tech industry and services. |
| Keywords: | Regional development; Social capital; Creative class; Civil society; Japan; High-tech industry |
| JEL: | J24 O33 R11 R12 |
| Date: | 2007–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0112&r=ent |
| By: | Fassin, Y.; Van Rossem, A.; Buelens, M. (Vlerick Leuven Gent Management School) |
| Abstract: | Recent academic articles point to an increased vagueness and overlapping of the concepts around business ethics and corporate responsibility. However, the perception of these notions in the entrepreneurial world can differ from the original academic definitions. This paper focuses on entrepreneurial cognition, a research stream which is increasingly being recognized as a perspective for understanding entrepreneurship related phenomena. Given the impact of the entrepreneur as owner of his venture, corporate responsibility and ethical issues can take a different breadth in SMEs. The entrepreneur has the possibility to shape the corporate culture and to enact values other than profit. This paper centers its attention on the cognitive study of a specific topic of management and entrepreneurship: the process of how CSR and business ethics related concepts are perceived or interpreted. For this research, the Repertory Grid Technique (RGT) is used, a method with limited applications in the business and society field. Our findings partially reject the confusion in terminology noticed in the academic literature. Entrepreneurs, pragmatically and rather clearly differentiate the various corporate responsibility and business ethics related concepts. These findings add to a better understanding of how entrepreneurs think and integrate corporate responsibility and ethical issues into their decision-making. |
| Date: | 2007–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:vlg:vlgwps:2007-32&r=ent |